CNBC — 2026-05-05#

Lead Story#

Artificial intelligence and semiconductor stocks dominated Tuesday’s session as Advanced Micro Devices soared 15% on data center growth, Micron eclipsed a $700 billion valuation, and Super Micro Computer spiked 18% on a guidance beat. The massive tech rally helped the S&P 500 and Nasdaq close at record highs, even as investors navigated rapidly shifting U.S.-Iran geopolitical tensions.

Markets & Economics#

The S&P 500 and Nasdaq closed at record highs after oil prices dropped from earlier spikes, driven by the U.S. pausing “Project Freedom” in the Strait of Hormuz amid progress on an Iran peace deal. On the economic front, Job openings and labor turnover comes in at 6.86 million; new home sales rise to 682,000, with the hiring rate jumping to 3.5%, signaling a potential thaw in the frozen labor market. Abroad, the Reserve Bank of Australia hiked rates to 4.35% to combat energy-driven inflation, prompting strategists to warn that Central banks ‘on verge of policy mistake territory’ if they induce a global recession over an oil supply shock. Meanwhile, Sen. Tim Scott criticized Jerome Powell’s decision to remain on the Fed board past his term as a “significant mistake” that breaks 75 years of precedent.

Business & Earnings#

It was a blockbuster day for tech earnings, with AMD data center revenue jumped 57% year-over-year driving shares up 15%, while Super Micro blew past fiscal fourth-quarter guidance expectations despite missing on Q3 revenue. In the financial sector, HSBC’s expected credit losses rise to $1.3 billion largely due to Middle East uncertainties, causing a miss on pre-tax profits, while UniCredit CEO: Taking control of Commerzbank is ’not the expected scenario’ as the Italian bank reported record quarterly profits of 3.2 billion euros. Meanwhile, the airline industry is digesting the biggest collapse in a generation as Spirit Airlines collapsed — here’s what happens next, leading rival Frontier Airlines to forecast a 3% to 5% revenue boost from reduced competition. Finally, Coinbase announced a 14% headcount reduction to rebuild around “AI-native pods,” and Bullish CEO Tom Farley on $4.2B Equiniti acquisition outlined plans to bridge blockchain with traditional capital markets.

Investing & Commentary#

Options traders are aggressively targeting the semiconductor space, paying massive premiums as Options traders flood Micron following the shipment of its highest-capacity solid-state drive. Jim Cramer highlighted that The AI-led computer economy is far broader than most people realize, identifying utilities, cooling tech, and networking firms like GE Vernova, Vertiv, and Eaton as the new buy list for 2026. In the energy sector, Bulls pile into Occidental prior to earnings, with options volume heavily skewing toward calls as traders bet on a fresh one-year high.

Also Worth Watching#

Categories: News
Tags: Artificial Intelligence, Semiconductors, Corporate Earnings, Geopolitics, Monetary Policy
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